Norwegian seismic player Petroleum Geo-Services (PGS) saw revenues slump in the first quarter of the year.

The company posted a profit of $4.6 million for the first three months of the year, well down on the $62.5 million profit booked over the same period in 2013.

The fall in profits came as first quarter revenues slid 26% year-on-year, from $394.8 million last year, to $292.5 million in the recent quarter.

PGS attribute the fall in revenue to lower contract and pre-funding revenues which it said were partly offset by slightly higher late sales revenues.

Contract revenues fell 44% to $116 million due allocating less capacity to contract work and lower prices due to some industry oversupply in vessels during the quarter.

Pre-funding revenue also fell year-on-year, from $92.6 million to $74.2 million, with PGS noting a lower pre-funding level in the most recent quarter due to a high share of multi-client activity in the Gulf of Mexico where it is seeking to expand its footprint.

“As guided in December 2013, Q1 was weak due to more capacity allocated to multi-client, a lower multi-client pre-funding level, seasonally lower pricing in the marine contract market and a high portion of steaming and yard time,” PGS chief executive Jon Erik Reinhardsen said.

“Our full year guidance remains unchanged. Vessel booking is progressing well with close to 80% of the capacity now committed for 2014.”

PGS expects full-year earnings before interest, taxes, depreciation and amortisation to be in the range of $900 million – 950 million and capital expenditure for the year total about $450 million.

As of 31 March, the company’s order book stood at $610 million, including $48 million of committed pre-funding on multi-client projects.